The proposed change would ‘temporarily’ allow auditors of Chinese-registered entities listing on the London Stock Exchange to use Chinese Standards on Auditing (CSAs) instead of having to use International Standards on Auditing (ISAs).

This means Chinese companies would not have to adhere to the International Standards on Auditing (ISAs), as is the requirement for foreign entities listed in London without audit standard equivalence.

The decision to allow an apparent watering down of audit requirements follows pressure from the government to change the auditing rules for Chinese companies eyeing up a UK listing.